ET reports that another round of layoffs are on at Zee

MUMBAI: The show must go on, but not for everyone. Zee Entertainment has shown around 200 employees the door—though many were consultants rather than permanent staff—as part of a restructuring effort that’s proving more tedious than a seven-season daily soap, according to a report in the Economic Times.

The latest cull is a continuation of the “rationalisation programme” (corporate speak for job cuts) that kicked off in April 2024, after the broadcaster’s much-hyped merger with Sony Pictures Networks India collapsed spectacularly. The company had promised investors it would trim 15 per cent of its workforce—roughly 700 people—to salvage margins and hit an Ebidta target of 20 per cent by FY26.

Sources familiar with the matter say the exits are tied to Zee’s push for an “omni-channel approach” and a “more agile and collaborative organisation structure”. Translation: fewer people doing more work.

A company spokesperson insisted the exercise reflects “consistent and strategic efforts” to sharpen focus on goals and performance. But the timing is less than stellar. Broadcasters across India are battling falling advertising revenues and subscriber churn, with the FMCG ad slowdown hitting particularly hard.

Zee’s September quarter results were hardly blockbuster material. Consolidated net profit plunged 63 per cent year-on-year to Rs 77 crore, as operating revenue slipped 2 per cent to Rs 1,969 crore. Advertising revenue tumbled 11 per cent to Rs 806 crore, though subscription income rose 5 per cent to Rs 1,023 crore, buoyed by linear and digital growth.

Chief executive officer Punit Goenka had assured analysts in July 2024 that “the largest part of the rationalisation in terms of people has already happened”. Apparently, the credits are still rolling.